News

Jim Long Pork Commentary: The markets are always moving

Some weeks we don’t have much to write about. It seems either we or the markets are in a doldrum. Probably we are more than the markets. The markets are always moving.

Let’s Review:

U.S. Lean hog price at 68¢ lb is 10¢ lb higher than a year ago. Kind of amazing considering there are supposed to be more Market Hogs.

U.S. cash feeders Pigs and Iso Weans at $42.00 and $37.00 are next to the same price as a year ago.

The greater lead packer capacity this year compared to last year has definitely cut packer gross margin. Right now, it is running 9¢ lb. A year ago, 5¢ lb.

The difference helps explain why producers are getting more money right now compared to a year ago.

African Swine Fever (ASF) is a big topic. There continue to be out-breaks in China. We expect this to continue.

One of our Genesus Production people worked in Kenya in the past. He talks about an ASF out-break there. They emptied the room it was in. It did not spread to the rest of the barn.

ASF is not like some of the other diseases where there can be rapid transmission!

Canada has marketed about 1% fewer hogs this year compared to last. Exports of small pigs from Canada to the U.S.A. is down 7%. Obviously, Canada has produced fewer pigs this year compared to last. We don’t’ expect to see any major change in production in future.

We expect when the second shift starts at the Seaboard-Triumph Plant in Sioux City and the Prestage Plant in Iowa to see a further erosion in Gross Packer Margin with the difference going to Producers.

Genesus Customers win 4 of 5

Lethbridge Alberta | Carcass Competition

Last week there was a major Carcass Competition in Lethbridge Alberta. The competition was judged by a senior official of a major Canadian packer, and there were 22 entries from all the major genetic companies.

Genesus customers won with 4 of the top 5. Our customers using Genesus Duroc and Genesus Materials.

What was interesting was the criteria for the judging. It was all encompassing, consisting of 7 categories, with maximum of 10 points for each category.

We have spent twenty years relentlessly working to develop genetics that have top production characteristics while having darker pork and excellent marbling to enhance the consumers eating experience.

It has been a long journey however we were determined that this is the direction our industry would come too. We are now there as our industry is beginning to realize the merits of the taste-flavor to enhance consumer demand.

Genesus - The worlds Duroc of choice.

Durocs are part of the equation However; we need to be conscious that just because a pig is red doesn’t mean the genetic package will deliver the combination of top production and carcass attributes that deliver taste/flavour.

Indeed, there were Red Sires from the other genetic companies in the Lethbridge competition. They all fell short in delivering the combination of back fat, loin eye marbling and colour. There are Red Sires and then there are Genesus Registered Durocs.

Currently Genesus has the largest Duroc herd in the world with over 4,000 Duroc sows in production globally. Size, scale, quality.

Genesus is the world Duroc of choice. Competitions like the one in Lethbridge prove it!